Saudi Arabia's aviation authority said in a statement on Wednesday that it has terminated a concession agreement with Singapore's Changi Airport International and its local Saudi partner to operate the King Abdulaziz International Airport in Jeddah.
Last April, the General Authority of Civil Aviation (GACA) awarded the contract for a period of up to 20 years. However, it did not elaborate on its reason for cancelling the agreement.
In a separate statement, Changi and its partner, the Saudi Naval Support Company has confirmed that the consortium had received a notice of termination from GACA. Reuters quoted the companies as saying that they had "strictly observed the request for proposal process stipulated by GACA".
"(The consortium) submitted all required documentation for GACA's review and had obtained all requisite approvals prior to the award of the concession", they told Reuters.
For the past several years, Saudi Arabia has brought in foreign firms to manage some of its airports as part of a broader privatisation drive. This initiative will eventually involve selling stakes in the airports themselves.
In 2011, Saudi Arabia awarded a build, transfer and operate contract for a new airport in Medina to TAV Airports Holding and Al Rajhi Holding. However, they later chose the same consortium to develop and operate airports in Yanbu, Qassim and Hail.
The kingdom awarded Dublin Airport Authority (DAA) a contract to manage and operate Riyadh airport's new Terminal 5 in 2016.
